Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 11, Problem 1SQ
To determine
The marginal revenue product of the 11th worker.
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A company has the following production relationships:
Number of Workers
Output
11
18
26
33
4
The marginal product of the fourth worker is
units.
If the marginal product of the third worker were 7 units, and the price of the output is $10, the third
worker's marginal revenue product is $
If the marginal product of the third worker were 7 units, and the price of the output is $10, then the
maximum amount the company would be willing to pay the third worker if he or she were hired is $
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$10. Then the output market improves dramatically and the output price doubles to $20. The new
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Suppose initially the marginal product of the third worker were 7 units and the price of the output is
$10. Then a new technology makes each worker more productive and marginal product doubles. The
new maximum amount the company would be…
Labor(workers per day)
Total product (units per day)
Marginal product
Average product
0
0
0
0
1
2
2
2
2
8
3
12
4
15
5
16
1
In the above table, the marginal product is greatest when the
fourth worker is hired.
first worker is hired.
third worker is hired.
second worker is hired.
A new coffee shop opens and to maximize profit it hires 5 workers at the competitive wage rate.
The price of a cup of coffee is $2 and the value of marginal product of workers in the coffee shop is $8 an hour.
If the price of a cup of coffee rises from $2 to $3, the value of marginal product of the last worker hired before the price
change
and the number of workers hired
de in
%
5
A. increases; decreases
B. decreases; increases
C. decreases; decreases
D. does not change; does not change
E. increases; increases
C
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Chapter 11 Solutions
Micro Economics For Today
Ch. 11.3 - Prob. 1YTECh. 11 - Prob. 1SQPCh. 11 - Prob. 2SQPCh. 11 - Prob. 3SQPCh. 11 - Prob. 4SQPCh. 11 - Prob. 5SQPCh. 11 - Prob. 6SQPCh. 11 - Prob. 7SQPCh. 11 - Prob. 8SQPCh. 11 - Prob. 9SQP
Ch. 11 - Prob. 10SQPCh. 11 - Prob. 11SQPCh. 11 - Prob. 1SQCh. 11 - Prob. 2SQCh. 11 - Prob. 3SQCh. 11 - Prob. 4SQCh. 11 - Prob. 5SQCh. 11 - Prob. 6SQCh. 11 - Prob. 7SQCh. 11 - Prob. 8SQCh. 11 - Prob. 9SQCh. 11 - Prob. 10SQCh. 11 - Prob. 11SQCh. 11 - Prob. 12SQCh. 11 - Prob. 13SQCh. 11 - Prob. 14SQCh. 11 - Prob. 15SQCh. 11 - Prob. 16SQCh. 11 - Prob. 17SQCh. 11 - Prob. 18SQCh. 11 - Prob. 19SQCh. 11 - Prob. 20SQ
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